More states challenge EU emissions caps

Friday, September 14, 2007

More states challenge EU emissions caps

Latvia and Lithuania have become the latest countries tolegally challenge the European commission over cuts to national allocation plans (Naps) for phase II of the EU emissiontrading scheme (EU ETS), bringing the total to seven.

Latvia said on 31 July that it would lodge a complaint with the European court of justice by 26 September. At 55.5 per cent the reduction in Latvia’s cap demanded by the commission isproportionally larger than for any other EU country.

Lithuania is facing the second largest percentage cut – 47 percent – in allowances compared with the government’s request.

On 16 August, the government decided to fight back. An official told ENDS the commission’s calculations were wrong because they applied average GDP growth rates to estimate businessas- usual emissions, failing to appreciate that growth in ETSsectors such as lime, cement and chemicals has been much faster. The allocation methodology was inappropriate forEurope’s rapidly growing economies, the source said.

The government’s decision was apparently swung by figures showing the electricity sector could run short of allowances when the Ignalina nuclear plant is shut down. The other countries challenging their Naps cuts are Estonia, the Czech Republic, Hungary, Poland and Slovakia.

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